Recently, SF Holdings (002352. SZ, the leading domestic express delivery company, released its 2022 annual report. The company's operating income increased by 29. 1 1% year-on-year to 267.5 billion yuan, the net profit attributable to the mother increased by 44.62% year-on-year to 665,438+74 million yuan, and the net profit after deducting non-profit increased by 190.97 year-on-year.
Compared with companies in the same industry, the year-on-year growth rate of SF Holdings' net profit in 2022 is higher than that of Dayun (002 120. Shenzhen) and ZTO Express, but lower than Shentong Express and YTO Express.
The performance of the express delivery industry is picking up, and policy orientation is one of the influencing factors. Previously, the state strengthened the guidance and supervision of the express delivery industry, strengthened the healthy and benign development of the express delivery market and the protection of the legitimate rights and interests of express delivery brothers, and curbed the "price war" trend in the express delivery market.
Although the performance of the express delivery industry has picked up, its net interest rate is still at a low level. According to the financial report, the net interest rate of SF Holdings in 2022 was 2.62%, which was about 5% in previous years. Wind data shows that in 2022, the net profit margin of ZTO Express and UPS. N is 18.82% and 1 1.5 1% respectively. In the first three quarters of 2022, SF Holdings' net profit rate of 2.77% was higher than that of Shentong Express and Dayun, and lower than that of FedEx (FDX). YTO Express, ZTO Express and United Parcel Service Company. The last two figures both exceed 10%.
Vertically, compared with the year-on-year growth rate of operating income and net profit of 202 1, 34.55% and -4 1.73%, SF Holdings' profitability has improved in the case of a slight decline in revenue growth rate in 2022. However, compared with 2020, although the company's operating income increased by about 1 135 billion yuan in 2022, the net profit returned to the mother decreased by nearly 6,543.80 billion yuan compared with 2020.
"The aging business with the largest proportion of SF Holdings' revenue was affected by the epidemic in 2022, which affected the company's overall revenue growth. Wei Jianhui, an analyst of Analysys brand retail industry, told Caijing that Kerry Logistics (0636. HK), the improvement of the product structure of the old business and the narrowing of the loss of the new business have increased the growth rate of the company's net profit.
SF Holdings, which is in the painful period of transformation, has a relatively low performance in the secondary market. On April 7, 2023, the company closed at 58 yuan/share, which was 52.42% lower than the high of February 8, 2026 12 1.9 1 yuan/share. Meanwhile, the company's share price fell to 4 1.77 yuan/share on March 30, 2022, with the highest drop of over 60%.
After the sharp decline in net profit in the first half of 200212002, reducing costs and increasing efficiency became an important force point for SF Holdings. Since the second half of that year, the company has actively optimized the product structure, reduced the number of low-profit products, and promoted the profitability of economic express delivery through measures such as optimizing product services and pricing stratification.
"The performance in 2022 achieved rapid growth compared with the same period of last year, mainly due to the improvement of income quality and the good effects of lean resource planning and cost control measures." Gan Ling, Secretary-General and Deputy General Manager of SF Holdings, said at the performance briefing on April 6.
After the merger of Kerry Logistics, the supply chain business, which was highly anticipated by SF, performed well in 2022. In this period, the revenue and net profit of the company's supply chain and international branches (mainly international express delivery, international freight forwarding and supply chain business) increased by more than 100% year-on-year.
SF Holdings entered the supply chain industry from 20 17. After the net profit of 20 18 company declined, Wang Wei, the chairman of the company, has led SF into the 2.0 era. Different from focusing on express logistics in the 1.0 era, Wang Wei said that the core competitiveness of the company in the 2.0 era will be to provide competitive industry solutions for key companies.
It is worth noting that since the fourth quarter of 2022, the income of SF Holdings' supply chain and international business has declined for five consecutive months, which makes the market worry that this business will drag down the company's performance in the first quarter of 2023.
"Affected by external factors such as shipping prices, SF Holdings' supply chain and international business performance in the first quarter of 2023 will be cautiously optimistic. Zhao Xiaomin, an expert in express logistics, told Caijing that according to the data tracked in the past half month, the indexes such as shipping price have rebounded, and it is expected that this business segment of the company will perform well in 2023.
Under the strategy of reducing costs and increasing efficiency, SF Holdings began to lay off employees in 2022. According to Caijing reporter's statistics, the total number of employees of SF Holdings at the end of 2022 was162,800, a decrease of143,000 compared with177,654,300 in the same period of last year. Among them, the number of operating employees decreased from 108500 to 93800, a decrease of 14700. Although the number of on-the-job employees has decreased, the salary payable to employees in the 2022 consolidated statement of SF Holdings increased by about 65,438+02.5% year-on-year to 6.3 billion yuan.
As the first batch of private express delivery enterprises established in China, SF Express entered its thirties in 2023. However, how to get through the painful period of transformation and how to further improve the company's profitability in the fierce market competition is still a test that its management needs to face.
Net profit rebounded
Reducing costs and increasing efficiency have been mentioned many times in the annual report of SF Holdings. The company said that although it faced many external challenges in 2022, it adopted a series of lean management measures to improve the quality by optimizing the structure at the income end and to reduce costs and increase efficiency at the cost end, and achieved good performance growth.
In Zhao Xiaomin's view, in the face of the complicated and changeable external environment, SF Holdings, which has a large volume, achieved double growth in revenue and net profit in 2022, and performed well on the whole.
In 2022, the year-on-year growth rate of operating costs of SF Holdings was 28.93%, slightly lower than the growth rate of operating income. Compared with the previous year, the growth rate of operating costs is much higher than the growth rate of income, which is obviously improved.
In terms of industries, although the revenue growth rate of some sectors of SF Holdings has declined, its profitability has improved significantly. In the 2022 annual report, SF Holdings divided the company's business into express delivery division, supply chain and international division, large-scale division, city division and undelivered part. In this period, the revenue of the first three sectors of the company accounted for about 52%, 34% and 12% respectively.
In 2022, the operating income of SF Holdings, the express delivery branch with the largest revenue share, increased by 4.6% year-on-year to 65.438+38.4 billion yuan, and its net profit increased by 42.46% year-on-year to 5.5 billion yuan. In the same period last year, the company's revenue increased by over 65,438+00%, and its net profit decreased by over 50% year-on-year.
Express business department includes limited-time express delivery, economical express delivery, refrigerated transportation and pharmaceutical business except for bulky items.
Based on the competitive advantage of express delivery scenario, SF Express has been extended to reverse logistics and e-commerce return. In 2022, the company's time-limited express delivery business realized an operating income excluding tax exceeding 1000 billion yuan, a year-on-year increase of 6.8%.
In 2022, the company's economic express business achieved an operating income of 25.55 billion yuan excluding tax, which was basically the same as the same period last year. SF said that the main reason is that the company adheres to the differentiated competition strategy, and actively optimizes the product structure and reduces the number of low-margin products since the second half of 20021. "After optimization, the service and pricing of products are layered, and the operation mode is more clearly separated, which promotes the profitability of economic express delivery."
The direct brand service performance of economic express delivery is remarkable. SF continues to optimize the product structure of direct e-commerce express delivery. By the fourth quarter of 2022, all the low-margin special distribution businesses will be delisted, and the main "fast electronic brand" products will maintain steady growth.
In terms of product benefits, the unit price of the company's "Fast Electronic Trademark" products remained stable. Through internal refined management, the gross profit of e-commerce express products has been continuously improved, and the profitability has been greatly improved year-on-year.
In 2022, the revenue of SF Holdings, the third largest business, increased by 65,438+00.57%, and its net profit turned losses into profits. This branch includes large-scale express delivery business and express delivery business. In express delivery business, the company optimizes product structure, integrates internal resources, and promotes cost reduction and efficiency improvement.
As another big branch of the company, the revenue of the same city branch of SF Holdings (mainly for the same city express delivery business) increased by 28.32% to 6.6 billion yuan in 2022, which was significantly lower than the increase of 58.79% in the same period of last year, but the net profit loss was greatly reduced from 900 million yuan to 300 million yuan.
"The same city urgently sends business income, and there are more business models and income structures. Specialized and differentiated services drive the growth of high-value orders, and personal services, non-meal scenes, and sinking cities and counties have become the main driving forces. " In its annual report, SF said that it would further release the economies of scale at the cost end, continue to carry out refined management, improve the operation quality and increase the resource input ratio, thus reducing costs and improving efficiency.
It is worth noting that Ezhou Huahu Airport, the first freight hub airport in Asia and the fourth in the world, which was jointly built by SF Express and the government, was put into operation in July 2022, and the first phase of freight transportation opened two routes from Ezhou to Shenzhen and Shanghai.
SF Holdings expects that the hub transshipment center will be put into operation in the third quarter of 2023, and the company will gradually build a hub-and-spoke aviation network with wide coverage, low cost and high efficiency, realize the optimization of the company's full-link network model and layout change, and bring more timeliness. Business increment.
Gan Ling said that the company is gradually planning to adjust the layout of the empty network, using Ezhou hub to build a hub-and-spoke aviation network, which is expected to further expand the coverage of cities with efficient services and reduce the unit cost of air transport parts through the transition of large aircraft.
In 2023, the operating income and business volume of SF Holdings' express logistics business (mainly including limited-time express delivery, economic express delivery, express delivery, refrigerated transportation, medicines and express delivery in the same city) declined slightly in May 438+10, and the above data rebounded sharply in February. However, the company's single-ticket revenue is still declining slightly.
The growth rate of international business is high and low.
Revenue increased by 124.9 1% and net profit increased by 2 16.27%. The growth rate of these two indicators ranks first in all business segments of the company, which is the transcript of SF Holdings' supply chain and international branches in 2022. The operating income and net profit of the company's supply chain and international branches are second only to the company's largest main business, express delivery branch.
Gan Ling said that the company's supply chain and international business achieved tax-free operating income growth, mainly because the company merged Kerry Logistics from the fourth quarter of 2002/KLOC-0 to expand the scale of supply chain and international business.
The data shows that Kerry Logistics' revenue in 2022 increased by 10% year-on-year to HK$ 86.649 billion, and the profit attributable to shareholders increased by 8% year-on-year to HK$ 3.579 billion.
SF Holdings' supply chain and international business include international express delivery, international freight forwarding and supply chain.
Among them, in terms of international express delivery, the company will build a benchmark product in Southeast Asia, and achieve rapid business growth in 2022 by encrypting flights or adding all-cargo scheduled flights from countries such as Singapore, combined with Kerry Logistics' resources and capabilities in Southeast Asia.
However, the international freight forwarding business is facing a turbulent external environment. The company said that in the second half of 2022, with the global economy weaker than expected and the excess inventory caused by too many previous orders, the demand for international trade in goods and the number of production orders fell sharply; At the same time, due to the recovery of air and sea transportation resources, the freight rate has dropped rapidly from the historical high range in a short period of time, and the great changes in supply and demand have obviously put pressure on international freight and agency business.
At the same time, SF, which has high hopes for the development of supply chain business, is in trouble. "In 2022, the domestic supply chain cycle was blocked in stages, which brought more challenges to the company's supply chain business and affected business growth." SF Holdings said in its annual report that the company ensures the continuous and smooth operation of the customer supply chain through cross-warehouse resource integration, multi-point layout of key cities and surrounding areas, and mutual linkage.
In the supply chain field, SF Fenghao and Xinxiahui provide local supply chain services in China; Kerry Logistics mainly provides global integrated logistics services.
The supply chain and international business that performed well in 2022 have declined.
Source: Financial reporters compiled according to company announcements.
Affected by Kerry Logistics' consolidated business income, the monthly operating income of SF Holdings' supply chain and international business increased by over 300% from June to September, 2022, with the highest growth rate of 522.66% in June.
This high growth did not last. From June 2022 10 to February 2023, the operating income of the company's supply chain and international business decreased by more than 20% year-on-year. Among them, in June 2023, the operating income of this business was 5438+ 10/0 billion yuan, down 39.22% year-on-year.
"Due to the weakening demand in the international trade market and the recovery of the resources at the supply end of international transportation resources, the international air and sea freight prices have been continuously declining from the historical high range since the second half of 2022, and by the end of 2022, the freight rate has basically dropped to a low level in the past three years, which has affected the income scale and profitability of the company's international freight and agency business." He Jie, chief financial officer and deputy general manager of SF Holdings, said that the above situation belongs to the cyclical fluctuation of the market, and the company still maintains confidence in the future development of the international market.
"From June 5438 to February 202310, SF's business income first fell and then rose, and the supply chain and international business continued to decline. This trend will continue in March. " Wei Jianhui told Caijing that the company's overall revenue is expected to increase slightly in the first quarter of 2023.
According to Kerry Logistics, 2023 will be the most challenging year in the global logistics market for more than ten years. Geopolitics, inflation and overcapacity, coupled with labor transformation and new policies and regulations, will continue to promote the restructuring of global supply chains. "In contrast, it is expected that there will be a significant gap in performance in 2023, and the company will make more efforts in cost management and operational optimization."
"When C-end customers enter the stock era, there is no problem with SF's B-end layout and the direction and strategy of the supply chain, but the effect is not well released in the short term." In Wei Jianhui's view, trunk transportation and terminal distribution are more profitable in international business. The company has strong control over trunk transportation, but there are still obvious deficiencies in terminal distribution.